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ARMOUR RESIDENTIAL REIT INC (ARR) Stock Fundamental Analysis

NYSE:ARR - New York Stock Exchange, Inc. - US0423157058 - REIT - Currency: USD

15.3  +0.42 (+2.82%)

After market: 15.4 +0.1 (+0.65%)

Fundamental Rating

3

Taking everything into account, ARR scores 3 out of 10 in our fundamental rating. ARR was compared to 65 industry peers in the Mortgage Real Estate Investment Trusts (REITs)" industry. ARR has a bad profitability rating. Also its financial health evaluation is rather negative. ARR is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

ARR had positive earnings in the past year.
ARR had a positive operating cash flow in the past year.
In the past 5 years ARR reported 4 times negative net income.
ARR had a positive operating cash flow in 4 of the past 5 years.
ARR Yearly Net Income VS EBIT VS OCF VS FCFARR Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M -200M

1.2 Ratios

ARR has a worse Return On Assets (-0.19%) than 66.15% of its industry peers.
ARR has a Return On Equity of -1.94%. This is in the lower half of the industry: ARR underperforms 66.15% of its industry peers.
Industry RankSector Rank
ROA -0.19%
ROE -1.94%
ROIC N/A
ROA(3y)-1.14%
ROA(5y)-1.48%
ROE(3y)-9.99%
ROE(5y)-10.72%
ROIC(3y)N/A
ROIC(5y)N/A
ARR Yearly ROA, ROE, ROICARR Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 -20

1.3 Margins

With a Gross Margin value of 1.09%, ARR is not doing good in the industry: 96.92% of the companies in the same industry are doing better.
ARR's Gross Margin has declined in the last couple of years.
ARR does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 1.09%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-71.79%
GM growth 5YN/A
ARR Yearly Profit, Operating, Gross MarginsARR Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200 -200

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1

2. Health

2.1 Basic Checks

The number of shares outstanding for ARR has been increased compared to 1 year ago.
The number of shares outstanding for ARR has been increased compared to 5 years ago.
ARR has a worse debt/assets ratio than last year.
ARR Yearly Shares OutstandingARR Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
ARR Yearly Total Debt VS Total AssetsARR Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

2.2 Solvency

ARR has an Altman-Z score of -1.05. This is a bad value and indicates that ARR is not financially healthy and even has some risk of bankruptcy.
ARR has a Altman-Z score of -1.05. This is amonst the worse of the industry: ARR underperforms 95.38% of its industry peers.
The Debt to FCF ratio of ARR is 40.98, which is on the high side as it means it would take ARR, 40.98 years of fcf income to pay off all of its debts.
ARR has a Debt to FCF ratio of 40.98. This is in the better half of the industry: ARR outperforms 63.08% of its industry peers.
A Debt/Equity ratio of 7.87 is on the high side and indicates that ARR has dependencies on debt financing.
ARR has a worse Debt to Equity ratio (7.87) than 76.92% of its industry peers.
Industry RankSector Rank
Debt/Equity 7.87
Debt/FCF 40.98
Altman-Z -1.05
ROIC/WACCN/A
WACCN/A
ARR Yearly LT Debt VS Equity VS FCFARR Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B

2.3 Liquidity

A Current Ratio of 0.01 indicates that ARR may have some problems paying its short term obligations.
ARR's Current ratio of 0.01 is on the low side compared to the rest of the industry. ARR is outperformed by 89.23% of its industry peers.
A Quick Ratio of 0.01 indicates that ARR may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.01, ARR is doing worse than 89.23% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 0.01
Quick Ratio 0.01
ARR Yearly Current Assets VS Current LiabilitesARR Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

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6

3. Growth

3.1 Past

The earnings per share for ARR have decreased by -9.71% in the last year.
The Earnings Per Share has been growing by 9.48% on average over the past years. This is quite good.
The Revenue has grown by 12.36% in the past year. This is quite good.
ARR shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 48.97% yearly.
EPS 1Y (TTM)-9.71%
EPS 3Y56.5%
EPS 5Y9.48%
EPS Q2Q%4.88%
Revenue 1Y (TTM)12.36%
Revenue growth 3Y114.12%
Revenue growth 5Y48.97%
Sales Q2Q%581.67%

3.2 Future

Based on estimates for the next years, ARR will show a decrease in Earnings Per Share. The EPS will decrease by -5.54% on average per year.
The Revenue is expected to grow by 147.78% on average over the next years. This is a very strong growth
EPS Next Y0.68%
EPS Next 2Y3.26%
EPS Next 3Y-5.54%
EPS Next 5YN/A
Revenue Next Year376.45%
Revenue Next 2Y147.78%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
ARR Yearly Revenue VS EstimatesARR Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 200M 400M
ARR Yearly EPS VS EstimatesARR Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 5 10 15 20

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6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 4.11 indicates a rather cheap valuation of ARR.
Based on the Price/Earnings ratio, ARR is valued cheaply inside the industry as 96.92% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ARR to the average of the S&P500 Index (28.92), we can say ARR is valued rather cheaply.
With a Price/Forward Earnings ratio of 3.90, the valuation of ARR can be described as very cheap.
Based on the Price/Forward Earnings ratio, ARR is valued cheaply inside the industry as 98.46% of the companies are valued more expensively.
ARR is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.65, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 4.11
Fwd PE 3.9
ARR Price Earnings VS Forward Price EarningsARR Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

ARR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ARR is cheaper than 92.31% of the companies in the same industry.
Industry RankSector Rank
P/FCF 4.68
EV/EBITDA N/A
ARR Per share dataARR EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates ARR does not grow enough to justify the current Price/Earnings ratio.
ARR's earnings are expected to decrease with -5.54% in the coming years. This may justify a cheaper valuation.
PEG (NY)6.05
PEG (5Y)0.43
EPS Next 2Y3.26%
EPS Next 3Y-5.54%

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5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 19.59%, ARR is a good candidate for dividend investing.
ARR's Dividend Yield is rather good when compared to the industry average which is at 14.86. ARR pays more dividend than 84.62% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, ARR pays a better dividend.
Industry RankSector Rank
Dividend Yield 19.59%

5.2 History

The dividend of ARR has a limited annual growth rate of 1.50%.
ARR has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.5%
Div Incr Years0
Div Non Decr Years0
ARR Yearly Dividends per shareARR Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100 200 300 400

5.3 Sustainability

The earnings of ARR are negative and hence is the payout ratio. ARR will probably not be able to sustain this dividend level.
DP-617.73%
EPS Next 2Y3.26%
EPS Next 3Y-5.54%
ARR Yearly Income VS Free CF VS DividendARR Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M 200M -200M

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ARMOUR RESIDENTIAL REIT INC

NYSE:ARR (4/24/2025, 8:04:00 PM)

After market: 15.4 +0.1 (+0.65%)

15.3

+0.42 (+2.82%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryMortgage Real Estate Investment Trusts (REITs)"
Earnings (Last)04-23 2025-04-23/amc
Earnings (Next)07-22 2025-07-22/amc
Inst Owners44.51%
Inst Owner Change0.43%
Ins Owners0.24%
Ins Owner Change3.97%
Market Cap1.22B
Analysts51.43
Price Target17.68 (15.56%)
Short Float %6.7%
Short Ratio1.99
Dividend
Industry RankSector Rank
Dividend Yield 19.59%
Yearly Dividend2.93
Dividend Growth(5Y)1.5%
DP-617.73%
Div Incr Years0
Div Non Decr Years0
Ex-Date04-15 2025-04-15 (0.24)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-10.52%
Min EPS beat(2)-21.46%
Max EPS beat(2)0.42%
EPS beat(4)2
Avg EPS beat(4)-7.15%
Min EPS beat(4)-21.46%
Max EPS beat(4)8.45%
EPS beat(8)3
Avg EPS beat(8)-4.55%
EPS beat(12)6
Avg EPS beat(12)-1.29%
EPS beat(16)6
Avg EPS beat(16)-4.37%
Revenue beat(2)0
Avg Revenue beat(2)-85.01%
Min Revenue beat(2)-96.41%
Max Revenue beat(2)-73.6%
Revenue beat(4)0
Avg Revenue beat(4)-87.26%
Min Revenue beat(4)-96.41%
Max Revenue beat(4)-73.6%
Revenue beat(8)0
Avg Revenue beat(8)-85.65%
Revenue beat(12)1
Avg Revenue beat(12)-120.31%
Revenue beat(16)3
Avg Revenue beat(16)-99.28%
PT rev (1m)0%
PT rev (3m)-0.83%
EPS NQ rev (1m)1.15%
EPS NQ rev (3m)-12.87%
EPS NY rev (1m)-7.83%
EPS NY rev (3m)-8.88%
Revenue NQ rev (1m)17.81%
Revenue NQ rev (3m)42.54%
Revenue NY rev (1m)13.32%
Revenue NY rev (3m)20.13%
Valuation
Industry RankSector Rank
PE 4.11
Fwd PE 3.9
P/S 2.17
P/FCF 4.68
P/OCF 4.68
P/B 0.9
P/tB 0.9
EV/EBITDA N/A
EPS(TTM)3.72
EY24.31%
EPS(NY)3.92
Fwd EY25.65%
FCF(TTM)3.27
FCFY21.37%
OCF(TTM)3.27
OCFY21.37%
SpS7.05
BVpS17.02
TBVpS17.02
PEG (NY)6.05
PEG (5Y)0.43
Profitability
Industry RankSector Rank
ROA -0.19%
ROE -1.94%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 1.09%
FCFM 46.41%
ROA(3y)-1.14%
ROA(5y)-1.48%
ROE(3y)-9.99%
ROE(5y)-10.72%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-71.79%
GM growth 5YN/A
F-Score6
Asset Turnover0.04
Health
Industry RankSector Rank
Debt/Equity 7.87
Debt/FCF 40.98
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.01
Quick Ratio 0.01
Altman-Z -1.05
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-9.71%
EPS 3Y56.5%
EPS 5Y9.48%
EPS Q2Q%4.88%
EPS Next Y0.68%
EPS Next 2Y3.26%
EPS Next 3Y-5.54%
EPS Next 5YN/A
Revenue 1Y (TTM)12.36%
Revenue growth 3Y114.12%
Revenue growth 5Y48.97%
Sales Q2Q%581.67%
Revenue Next Year376.45%
Revenue Next 2Y147.78%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y78.81%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y96.86%
FCF growth 3Y181.37%
FCF growth 5YN/A
OCF growth 1Y96.86%
OCF growth 3Y181.37%
OCF growth 5YN/A